1. February
2011
Tourism and Real Estate

2. 1. Why invest in the sector in Uruguay?
Tourism is an expanding industry both worldwide and in Uruguay with investment
opportunities available in multiple sub-sectors.
Tourism accounts for approximately 6% of Uruguayan GDP.
Uruguay offers very attractive natural conditions for several types of tourism, all located at very
short distances from each other: renowned beaches on the eastern littoral, rural tourism in the
hinterland, hot springs along the western littoral and urban tourism in cities such as
Montevideo and Colonia.
Infrastructure is constantly being updated for visitors to enjoy the best services. Examples
include the Montevideo Airport and the Colonia River Terminal, both opened in 2009.
In addition, Uruguay’s privileged location, rich soils, reasonable property prices and a healthy
financial system are advantages that make investments attractive and, above all, safe.
Uruguay’s proximity to Argentina (and Buenos Aires in particular) and southern Brazil ensures a
constant inflow of tourists.
The Ministry of Tourism and Sport is the national authority for tourism. The Ministry promoted
the creation of the 2009-2020 National Sustainable Tourism Plan, which encourages diverse
activities with a stable legal framework that promotes sector investments through significant
tax exemptions.
The region’s recent high economic growth is reflected on present can real estate and tourism
investments on course that will ensure a sustained increase in foreign visitors to the country.
2

3. 2. Incoming tourism in Uruguay and the world
2.1. Major global tourism trends: fairly constant annual growth, Europe and USA as
significant origins and destinations, seasonal peak in July and August1
International tourism has been on the rise over the last 15 years. The number of tourists has
expanded from 534 million in 1995 to an estimated 940 million in 2010. There was less
pronounced growth between 2001 and 2003 and a slight decline in 2009 due to the international
crisis, but a recovery was seen in 2010.
In South America, the number of tourists per year rose 76% between 1995 and 2008, reflecting a
higher growth than the world average (72%). Income from tourism doubled between 2000 and
2008, from US$ 475 to US$ 946 million. Similar growth has been seen in nearly all regions of the
world. See Figure 1.
Figure 1. Incoming international tourists (millions)2
In 2009, Europe received 52% of international tourists, followed by the Asia-Pacific region (21%),
the Americas (16%), the Middle East (6%) and Africa (5%). The most significant change since 1995
has been the higher relative growth of the Asia-Pacific region in comparison with Europe and the
Americas. See Figure 2.
1
Source: World Tourism Organization (UNWTO) Tourism Barometer.
2
Source: World Tourism Organization (UNWTO) Tourism Barometer, 1 and 6/2010, 2010 estimated.
3

4. Figure 2. Incoming international tourists per region, 2009 (millions of tourists and percentages)3
The pattern of income distribution from international tourism is similar to the one reflected in the
previous chart except for the relative importance of the Asia-Pacific region and the Americas
which is more significant.
Figure 3 shows the arrivals of international tourists for the 10 principal tourism destinations (of
the 120 destinations covered by the World Tourism Organization – UNWTO). Argentina, Brazil and
Uruguay have been added to the chart for comparison purposes. The figure shows that Uruguay, a
country with a small population, is ranked fifth in terms of the number of tourists in comparison to
population, denoting the importance of tourism for the country.
3
Source: World Tourism Organization (UNWTO) Tourism Barometer 6/2010.
4

5. Figure 3. Incoming international tourists per region (2009, percentage of population and figures
in millions)4
4
Source: tourists - UNWTO, Tourism Barometer 6/2010; population - Wikipedia, estimated population for early 2011. Note: chart
includes the 10 major tourist destinations plus Argentina, Brazil and Uruguay.
5

6. 140%
114% 112%
120%
100% 83%
74%
80% 63%
60% 45%
33% 29%
40% 19% 18%
20% 10% 4% 2%
0%
F ranc e S pain Malays ia Italy Urug uay United T urkey G ermany Mexic o US A Arg entina C hina B raz il
K ing dom
Tourists 74 52 24 43 2 28 26 24 22 55 4 51 5
Population 65 47 29 58 3 63 78 82 113 312 42 1,333 202
6

7. Incoming to
7

8. 2.2. Incoming tourism in Uruguay
Visitors and annual exports
Incoming tourism in Uruguay has expanded over the past five years. The number of visitors rose
from 1.8 million in 2006 to 2.1 million in 2009. An estimated 2.4 million are expected for 2010.5
Tourism exports, in turn, rose from US$ 594 million in 2005 to US$ 1,311 million in 2009 and are
expected to reach US$ 1,560 million in 2010.6 See figures 4 and 5.
The World Tourism Organization (UNWTO) and the WTO.Themis Foundation, in collaboration with
the IE Business School and the Ministry of Tourism and Sport of Uruguay (MINTUR) are performing
a case study entitled, “Natural Uruguay: the differentiation of an emerging tourist destination.”
This study, which is the first to be carried out on a tourism destination, is focused on analyzing the
increase in per visitor spending related to the increase in tourism income in Uruguay over the past
10 years.
Figure 4. Uruguay: annual visitors (thousands)7 Figure 5. Uruguay: annual tourism exports (US$
millions)8
5
Note: 2010 estimate based on data from first half of the year.
6
Source: www.bcu.gub.uy. Note: 2010 estimate based on MINTUR data on spending growth by tourists in the first half of the year
(19%).
7
Source: www.mintur.gub.uy. Note: 2010 estimate based on data from first half of the year.
8
Source: www.bcu.gub.uy. Note: 2010 estimate based on data from first half of the year.
8

9. Major tourist destinations
Uruguay’s main tourism destination is
Montevideo (33% in 2009), followed by Punta
del Este (26% in 2009). Overall, visitors to the
coastal region account for 40% of all tourists.
See Figure 6. The highest growth areas in the
country over the past five years are Colonia and
the coast of Rocha. The following map shows
the four major tourist areas plus Montevideo.
9

10. Figure 6. Visitors per destination (2009, in Figure 7. Visitor spending per destination
thousands and percentages)9 (2009, USD millions)10
Total visitor spending in 2009 was US$ 1,300 million. Punta del Este received 46% of the total
spending, followed by Montevideo at 33%. See Figure 7.
Average stay per person according to lodging type and main destination
The average length of stay in 2009 was 7.2 days. The 821,000 visitors staying in hotels (39%)
stayed for an average of 5.5 days. Meanwhile, the 1.125 million visitors staying in houses (54%)
stayed between 8 and 12 days, depending on whether they rented homes or stayed with family
and friends. See Table A1 in the Appendix.
Origin of visitors to Uruguay
Most of the tourists who entered the country in 2009 reside in Argentina (73%) and Brazil (12%),
but a significant number of Chileans and Paraguayans also came to Uruguay. Europeans and North
Americans accounted for 8.4% of the total. See Table A2 in the Appendix.
Visitors according to travel reason
Although most incoming persons state recreation or visits to family or friends (84%) as reasons to
enter the country, many come for business or professional reasons (154,000), conferences
seminars or study (20,000), sport (14,000), health reasons (11,000) and other (140,000). See Table
A3 in the Appendix.
Daily per person spending according to lodging type
Daily per person spending went from US$ 86 in 2009 to US$ 104 for hotel visitors and to US$ 95
for those staying in houses (rented or owned). Spending was US$ 116 per day in 2009 for those
visiting Punta del Este. In the first half of 2010, average daily spending per tourist was US$ 93.
9
Source: www.mintur.gub.uy. Total visitors: 2,099,000.
10
Source: www.mintur.gub.uy. Total spending: USD 1,297 million.
10

11. Visitor spending breakdown
Total spending by tourists in 2009 was US$ 1,300 million. Major spending areas were: lodging
(26%), food (24%), shopping (12%), transport (7.5%) and other (30.5%).
2.3. Cruise ship tourism11
The number of cruise ships stopping in Montevideo and Punta del Este has increased over the last
five seasons.
Cruise ship arrivals went from 99 in 2005-06 to 179 in 2009-10. The total number of visitors rose
from 111,000 in 2005-06 to nearly 300,000 in 2009-10, as seen in the following two charts.
11
Source: www.mintur.gub.uy.
11

12. Figure 8. Cruise ship arrivals per port and Figure 9. Cruise ship visitors per port and
season12 season (in thousands)13
In the 2009-10 season, most cruise ship visitors were Brazilian (53%), Argentine (23%), North
American (12%), European (5.5%), rest of the Americas (4.5%) and other nationalities (1.7%). See
Table A4 in the Appendix.
Cruise ship visitor spending in Uruguay, 2009-10
Total cruise ship visitor spending was US$ 17.8 million, averaging US$ 61 per person. Total
spending was US$ 10.5 million in Punta del Este and US$ 7.3 million in Montevideo.
Purchases accounted for 71% of spending, followed by food (16%), tours (6%), transport (1%) and
other (6%).
2.4. Specific data on tourism types
Beaches are the Uruguayan main attraction, with the coast concentrating 40% of visitors.14 Punta
del Este, other areas of Maldonado and Rocha feature fine sand beaches, water suitable for
swimming in summer, a maritime landscape, hospitality and security. Punta del Este is where real
estate investments are concentrated.
Montevideo and Colonia are known for urban tourism. Montevideo has high hotel occupation
rates throughout the year (70% on average).15
Rural tourism has grown over the last 10 years. Farms outside the capital are used to provide
recreation and a place to rest. The western littoral region near the Uruguay River features hot
spring tourism facilities.
12
Source: www.mintur.gub.uy.
13
Source: www.mintur.gub.uy.
14
See page 8 of this report.
15
Information provided by Oscar Iroldi, Montevideo Tourism Conglomerate coordinator.
12

13. Rural Tourism16
Rendering of rural tourism services is regulated by decree 371/2002.
On 2009, 122 rural establishments were surveyed, of which 23 were in Maldonado, 21 in Colonia,
13 in Rocha, 12 in Lavalleja and the remaining were spread out through the rest of the country.
The greatest concentration is found within 300 km of Montevideo.
Rural tourism characteristics
1. Country Hotel. Contact with nature, yet
with the comforts of a hotel. High level
service with hints of rural life. Possibility
of related activities. Lodging and all-
inclusive services offered.
2. Guest Ranch. Contact with the past and
history, ranch traditions. Attended by
host family. Possibility to participate in
ranch activities. Comfortable, home-
like. Livestock or farm production. All
inclusive services and activity days in
the countryside.
3. Country Inn. More modern
infrastructure adapted to tourism.
Comfort and good level of service.
Attended perhaps by host family. Activities depend on the area and activity of the
farm/ranch. Lodging, all inclusive services and activity days in the countryside.
4. Tourist Farm. Small properties focusing on farm activities, which set the context for the
farm’s cuisine. May or may not be attended by the host family. Farm’s own products used
for consumption and sale. Offers day activities and an authentic country restaurant.
5. Country House. Concept that includes everything not included in the previous
establishments. No lodging. Activities, recreation, food. Offers day activities and an
authentic country restaurant.
Of these establishments, 68% receive foreigners. 57% state they receive visitors from Europe, 30%
from North America, 30% from Mercosur countries, 99% from Latin America and 16% from other
countries.
16
Based on a study by STI-MINTUR-SUTUR-CEADU (2009).
13

14. Hot Springs Tourism17
There are more than 10 hot spring centers in the western littoral region of Uruguay. Significant
investments have been made in several complexes. These centers have pools of different sizes
featuring water from the Guaraní Aquifer with temperatures up to 44°C (111°F). Hot spring
developments include hotels, bungalows, motels, restaurants, tennis courts, healing centers and
parks.
These hot springs complexes include, from north to south, Arapey (Artigas department), Salto
Grande and Daymán (Salto department); and San Nicanor, Guaviyú and Almirón (Paysandú
department). The sources of the hot springs were discovered during petroleum prospecting by
state-oil company ANCAP.
Recent investments include Arapey Municipal Hot Springs, a 600-hectare complex, located
80 km north of the city of Salto. The 5-star Hotel Arapey Thermal Resort and Spa has also
opened in the area.
Nearby, the Altos del Uruguay golf club and hotel is currently under construction (as of
December 2010). On the 60-hectare area including an 18-hole golf course (11 holes were
opened in September 2010), an infrabasaltic perforation will be made for a 1,200 meter
well to extract thermal
water to supply the 5-star
hotel. The hotel will feature
120 rooms, 20 suites, a hot
tub, two indoor and outdoor
pools, a gym and spa. The
investment will total USD 18
million and will include a
landing strip for small
aircrafts.18
17
Source: www.viatermal.com.
18 nd
El País newspaper, 22 of September 2010.
14

15. 3. National Sustainable Tourism Plan 2009-2020
In June 2009, Uruguay released its National Sustainable Tourism Plan for the 2009-2020 period,
which is leaded by the Ministry of Tourism and Sport (MINTUR).
The plan aims for Uruguay to be an internationally recognized friendly and safe tourism
destination that is committed to sustainable development with quality services, qualified people
and full coordination among key sector players.
The plan’s strategic orientation is based on following five lines of action:
1. An economically, environmentally and socio-culturally sustainable tourism model.
2. Innovation and quality, driven by competitiveness.
3. Increased capabilities, employment quality and commitment of players in the tourism
system.
4. Marketing and promotion to broaden demand and cultivate loyalty.
5. Tourism as a tool for social, territorial and political integration while conscious of diversity.
One of the aspects of the national plan is a Nautical Tourism plan to position Uruguay as a Nautical
Tourism Destination in the southern cone of South America.
Investments will be made in three types of infrastructure: sport vessel ports, boating areas and
river facilities, for which integration is sought among nautical activity companies in the area.
15

16. 4. Tourism related services: hotels
As of April 2009, there were 488 hotels in Uruguay, 18% more than in 2002. The number of rooms
rose 12% in that period. Most hotels are located in the department of Maldonado, mainly in the
city of Punta del Este. See Tables 4.1 and 4.2 and Table A5 in the Appendix.
Table 1. Hotels in Uruguay (2009)19
Stars Hotels Rooms Number of beds
***** 12 1,504 2,127
**** 42 2,233 4,882
*** 154 5,386 11,093
** 140 3,350 7,117
* 74 1,485 3,063
Not rated 66 1,506 3,957
Total 488 15,464 32,239
Table 2. Hotels in Uruguay per department (2009)20
Stars Maldonado Montevideo Colonia Rocha Salto Paysandú Rest of country Uruguay
***** 4 3 1 0 1 0 3 12
**** 17 13 6 2 0 1 3 42
*** 56 18 16 12 7 1 44 154
** 36 21 12 10 5 2 54 140
* 11 18 2 4 0 1 38 74
Not rated 19 11 5 9 6 2 14 66
Total 143 84 42 37 19 7 156 488
Of the 543,190 tourists who visited Punta del Este in 2009, 38.3% stayed in hotels. The
distribution was as follows: 1 star - 1,963 (0.4%); 2 star - 9,089 (2%); 3 star: 47,284 (8.7%); 4 star:
109,958 (20.2%); 5 star: 29,780 (5.5%); not rated: 8,151 (1.5%). Some 324,323 tourists (59.7%)
stayed in rental houses or in homes of family and friends. Other lodging types included:
campsites – 2,450 (0.5%); apartment hotels – 5,487 (1%); timeshares – 2,610 (0.5%); other – 2,095
(0.4%).21
19 th
Source: MINTUR, data as of 30 of April 2009.
20 th
Source: MINTUR, data as of 30 of April 2009.
21
Source: Maldonado Tourism Observatory, 2009 year book; Quo Vades consulting firm.
16

17. 5. Recent investments
An approximation of investments in the tourism sector over the last few years can be made using
information on investments promoted in accordance with law 16,906 of 1998 and decree
455/007.
Figure 10. Promoted tourism sector investments (US$ millions)22
The following are some significant investments on course and later we will examine other
undertakings grouped by location.
5.1. Carmelo Golf operated by Four Seasons, department of Colonia23
Carmelo Golf is a closed development consisting of 220 lots and 12 farms with a golf course,
driving range, lakes, equestrian area and polo field. The project is a joint venture between the
Real Assets and Eidico companies of Argentina. The undertaking is located on route 21 in Carmelo
across from an exclusive 44-room hotel operated by Four Seasons. An international airport
serving the highest number of private flights in Uruguay is located 7 km from Carmelo in the
department of Colonia.
Carmelo Golf is located among pine and eucalyptus trees near the La Plata River. Rooms are
distributed in 90 m2 bungalows and 120 m2 suites with views of the countryside and the river. The
complex includes a spa, gym, indoor and outdoor pools, beach, two tennis courts, two restaurants,
a convention center and casino.
The total investment amount will be US$ 15 million. Sales prices for lots vary between US$ 40,000
and 350,000.
22 th
Source: COMAP. Note: 2010 estimate with data as of 30 of September 2010.
23 th
Source: www.ciudadbiz.com, business news website, 8 of November 2010.
17

18. 5.2. Hotel Fasano and Las Piedras Villas development, Punta del Este24
Located eight kilometers from La Barra in the department of Maldonado on the top and side of a
hill, this 480-hectare complex opened in December 2010 with a total investment of more than
US$ 100 million. The hotel consists of 34 bungalows ranging between 38 and 120 m2 in size and is
administered by Hoteles Fasano of São Paulo, Brazil. It was designed by Brazilian architect Isay
Winfield.
The project also features 295,000 m2 lots surrounding a golf course designed by Arnold Palmer.
Homes have been built on some of the lots. In addition, there is a section with one and five
hectare properties.
The complex includes a polo field, tennis courts and a beach on the Maldonado Stream.
5.3. The Setai hotel and development in José Ignacio, department of Maldonado25
The Setai José Ignacio is located in the beach resort town of José Ignacio, Maldonado. It is located
on a 25-hectare property and has 1,300 meters of oceanfront space.
The undertaking consists of two areas:
An oceanfront boutique hotel in the main area with 10 individual villas.
A residential area consisting of 40 lots to the east and west of the hotel for luxury homes.
This exclusive boutique hotel will feature a wide range of services, including retail, recreation,
leisure and a spa that will also serve villa owners. The main building will have 2,800 m2 of space
and will house administrative and recreational activities of the hotel and spa, including a
restaurant, Club Setai and 10 exclusive suites. The hotel will offer lodging in two-bedroom villas
located on the property.
The residential area consists of 40 individual lots averaging 2,000 m2 in size. 26 of the lots are
oceanfront and the rest are in the second and third rows from the oceanfront lots. The lots were
designed for large and exclusive residences ranging from between 250 to 500 m2.
The total investment for the hotel and general infrastructure is approximately US$ 40 million.
5.4. Hotel Rivera Casino Resort, city of Rivera26
This project, located in the city of Rivera on the border with Brazil, consists of three sections
totaling 13,000 m2 of space. A 4-star hotel will feature 60 rooms, a restaurant, conference hall,
spa, game room and pool.
Another building will include slot machines and a restaurant.
A third part of the project is a remodeling of the former Hotel Casino building and will feature
casino table games, a slot machine room and six VIP rooms and will be connected to the hotel
complex via a glass bridge over Uruguay Street.
24 th
Source: El Observador newspaper, Café y Negocios section, 16 of November 2011.
25 th
Source: Seinco, 29 of November 2010.
26 rd
Source: www.ciudadbiz.com, 3 of November 2010.
18

19. The total investment by the Boldt-ICM-Manteo consortium is estimated at US$ 27 million.
5.5. Hotel projects underway in Montevideo27
In 2009, Montevideo had 9,700 hotel beds28 and new projects currently in construction will add
another 1,200. The following are the main projects underway.
Regency Hotels Group.29 Regency, a business group of local capital, has three hotels in
Montevideo and is building one more in the Carrasco area with a US$ 3.5 million investment.
Sofitel Montevideo Casino Carrasco and Spa. Remodeling underway.30 The municipality of
Montevideo awarded the reconstruction and 30-year concession of the Carrasco Hotel
Casino to a consortium led by Codere of Spain along with the AGG company of Argentina,
other international investors and the Sofitel hotel operators, the premium brand of French
chain Accor. Sofitel administers 134 luxury hotels in 50 countries. More than US$ 60 million
will be invested in the project. The hotel will feature 119 luxury rooms and will open in
2012. Codere is a Spanish multinational renowned for private casinos in Europe and Latin
America. Accor is already represented in Uruguay through the Ibis Hotel, located on
Montevideo’s rambla, or seaside avenue.
Hotel Esplendor Cervantes Montevideo. Remodeling underway.31 Argentine business group
Fën administers 17 establishments in several countries in Latin America and will remodel
and administer the Cervantes Hotel, which has been declared a historical heritage site of the
city. The hotel is located downtown and will feature 85 rooms and a multipurpose hall for
corporate events, parties and tango galas, with an original design (boutique hotel). The total
investment amount will be US$ 8 million. The opening is scheduled for 2011.
Pestana Montevideo Hotel. Remodeling underway in the former Jockey Club building.32
Portuguese business group Pestana Hotels & Resorts administers 88 hotels, 43 of which are
on three continents and 45 luxurious and historic hotels in Portugal, in castles, monasteries,
palaces and fortresses. In Montevideo, the hotel is located on the capital’s main avenue, 18
de Julio, 100 meters from Plaza Independencia. The hotel will feature 100 rooms on 15
floors with a spa, indoor pool and halls for events and conventions. Neela of Spain is the
owner of the building, which will be leased for 30 years. This undertaking will be the 13th for
the company in South America and the investment will total US$ 20 million. The opening is
planned for 2012.
Hilton Garden Inn (part of the Hilton chain). Next to Montevideo Shopping Center and the
World Trade Center, featuring 120 rooms and a US$ 10 million investment currently
underway.
27 th rd
Source: El Observador newspaper, 14 of July 2010 and El País newspaper, 3 of September 2010.
28
Source: Montevideo Tourism Conglomerate strategic plan, 2009.
29 th
Source: El País newspaper, Economía y Mercado section, 8 of November 2010.
30 th th
Source: El País newspaper, 25 of November 2009, 10 of September 2010.
31 th
Source: El País newspaper, 8 of November 2009.
32 th
Source: www.portaldeluruguay.com, 9 of March 2010.
19

20. After Hotel. Located in Pocitos/Buceo, with 90 rooms and a US$ 8 million investment
underway.
Urban Express Hotel. Located in downtown Montevideo next to the Adela Reta Auditorium.
Opened in September 2009 with 30 rooms.
5.6. Projects underway in Punta del Este, Punta Ballena, La Barra and José Ignacio
To illustrate the growth of real estate investments in the greater Punta del Este area, we present
some large projects currently underway financed mainly with foreign capital. Also included is an
undertaking by the municipality of Maldonado.
Sales prices for lots vary between US$ 30 and 150 per m2, while apartment prices do not exceed
US$ 3,000 per m2 on average.
Convention Center and Fairgrounds. The municipality of Maldonado is in the process of
awarding the construction of a convention center and fairgrounds on a property in El Jagüel,
located a few minutes from downtown Punta del Este and the city of Maldonado. The site has
convenient connections to highways, the airport and port. The first stage includes the
construction of a convention hall and preparation of a 12,000 m 2 fairground. The second
includes another convention hall and a 6,000 m2 expansion of the fairground area. The plan
and financing proposal were presented by architect Carlos Ott and Bilkoy S.A. A bid is pending
for the construction and management stages.
20

21. The following are some projects under construction as of November 2010: 33
Silente Club de Mar. A project of Argentine capital located on the rambla (Seaside Avenue) in
the Rincón del Indio neighborhood. Four buildings on a 3.5-hectare lot with units ranging
from 160 to 718 m2 with ocean views plus 22 houses of 180 m2 each. Each unit has two
parking spaces. The complex has a par 3 pitch and putt course, heater covered pool, outdoor
pool, tennis court, club house, gym, spa, business center, reading room and kids’ club.
Blue Bird. A project of Swedish capital. An oceanfront tower on La Mansa beach with two and
three bedroom units ranging from 130 to 300 m2.
One. Argentine and Uruguayan capital project featuring four 25-floor towers on a 28,000 m2
property with ocean views. Units have three and four suites each and services and
conveniences of a 5-star hotel.
Le Parc 1 and 2. An oceanfront tower of Argentine capital featuring 24 floors of 2 and 3
bedroom ocean view luxury apartments, all with housekeeper quarters.
Laguna de los Cisnes. European capital project, 15 minutes from Punta del Este and 4 km from
the Laguna del Sauce airport. 238 hectares divided in 224 half-hectare lots and 120 hectares
of common space, 20 hectares of a lake and 4,000 hectares for watersports. Prices start at
US$ 29 per m2.
Swan Lake Forest. European capital project, located on route 12 km 5 facing Sauce Lake in the
Cumbres de La Ballena hillside. On this 50-hectare development, 5 hectares will be allotted for
a hotel that will be completely independent from the rest of the development. Lots sizes
range from 1,000 to 4,800 m2.
Green Park. Argentine capital project located in Punta Ballena. A private club with apartments
surrounded by 140 hectares of virgin forest.
El Puertito. European capital project. A development in Punta Ballena 9 km from the airport
and 15 km from Punta del Este on Sauce Lake. Of the 9-hectare area, 6 are for exclusive use
and 33% consist of common spaces.
Villa Lagos. European capital project, development in La Barra. This project is located in
Buenos Aires neighborhood along route 10. It is a large residential development consisting of
13 maritime farms between 4 and 5 hectares each and villas between 700 and 900 m2.
Pueblo Coyote. Argentine capital project. A development in La Barra in an area with vineyards
consisting of 29 lots of 2,000 m2 each. It has a tennis court, studio, boutique winery and
clubhouse with a pool and barbeque area.
Laguna Estates. Spanish capital project. A development in La Barra located on route 104, 15
km from Punta del Este. It consists of 81 lots of between 5,000 to 10,000 m2 with tennis
courts and a clubhouse.
Laguna Escondida. Argentina capital project, a hotel and development in José Ignacio. The
project is on two properties accounting for approximately 120 hectares. The residential and
hotel/spa area will be developed on an 86-hectare tract north of the highway. The second 12-
33
Source: ciudadbiz.com, 12 November 2010.
21

22. hectare tract on the beach will house the beach club and residences with lot sizes ranging
from 1,800 to 7,000 m2 with a front greater than 35 m.
Las Coronillas. Argentine capital project, development in José Ignacio. Total surface area is
100 hectares consisting of 55 properties of 8,000 m2 each with 50 hectares of lake and park
areas, 4,500 m of roads, club house, pool, bonfire area, stables and corrals, children’s area
and horse and bicycle trails.
Veramansa. A complex by the Alvear business group of Argentina. It consists of several
buildings and 800 m2 lots (average) surrounded by trees and lakes and a direct access to the
beach. The investment will total more than US$ 30 million and will include a 5-star spa.
Apartments range in size from 180 to 400 m2 and feature an international level of luxury.
5.7. Projects underway in the city of Colonia34
Over the last few years, real estate in the city
of Colonia has seen significant growth. On the
coastal avenue, the lot prices exceed US$ 500
per m2 and properties sell for more than US$
2,200 per m2. 80% of the apartments on the
coastal avenue are purchased by Argentines
who use them as second or retirement
homes.
In 2010, real estate projects were announced with investments totaling more than US$ 5 million,
including the Altos de Virrey hotel, the Costa Colonia condo hotel, and several apartment
buildings, all along the coastal avenue.
6. Prices and costs in the Uruguayan real estate sector
6.1. Real estate market
The largest real estate investments have been made in Montevideo and Punta del Este and
consists of two main types: horizontal properties (condominiums) and individual houses. Both are
linked to the tourism industry, especially in Punta del Este, due to the fact that most buyers are
foreigners and because the properties are rented to tourists in summer.
34 th
Source: El Observador newspaper, Café y Negocios section, 17 of October 2010.
22

23. The National Statistics Institute (INE) provides
construction costs and existing home sales prices
for Montevideo. Costs are categorized into 10
housing types in order of price.35 Sales price
classification includes variables such as type
(horizontal property, etc.), age (decade of
construction), neighborhood, size (m2) and use
(housing, office, retail, other).36
The following is a cost and sales price comparison
for specific horizontal properties in Montevideo.
For the comparison, we have selected the highest
cost properties (luxury tower with elevator and
heating). Regarding sales price, we have selected
the top four highest price areas and the 75th
percentile.
Table 3. Montevideo: comparison between used unit sales price and construction cost, 2007-
2009 (US$/m2)37
Construction Used unit sales price
Year
cost Punta Carretas Pocitos Parque Rodó Malvín Average
2009 958 1,564 1,448 1,362 1,331 1,426
2008 928 1,507 1,294 1,158 1,273 1,308
2007 753 1,314 1,152 974 1,066 1,127
Note: cost per square meter includes: materials, compensation, equipment depreciation, benefits and general expenses of the
construction company, value added tax and social security (BPS). Does not include land value, professional fees, construction
permit costs and real estate commissions. The annual per square meter cost was calculated by averaging 6-month costs in
Uruguayan pesos from the INE and applying the inter-bank exchange rate (ask price) averaging the monthly exchange rate taken
from www.ine.gub.uy/índices de precios y salarios/cotización de monedas. The sales price refers to used horizontal properties at
th
the 75 percentile.
35
See www.ine.gub.uy/actividad/actividad inmobiliaria/indicadores de actividad y precios del sector inmobiliario.
36
See www.ine.gub.uy/indices de precios y salarios/precios de la construcción de viviendas.
37
Source: INE National Statistics Institute. For costs: www.ine.gub.uy/indices de precios y salarios/precios de construcción de
viviendas. For sales prices: www.ine.gub.uy/actividad/actividad inmobiliaria/indicadores de actividad y precios del sector
inmobiliario.
23

24. No cost data exists for Punta del Este, but we estimate that costs are perhaps only slightly higher
than in Montevideo. However, per square meter sales price data for housing is available
(horizontal properties and individual houses).
For example, the average sales value per square meter in Punta del Este was US$ 1,623 and the
75th percentile was US$ 2,024. In Pine Beach, the average value was USD 1,997 and the 75 th
percentile was USD 2,401.38
6.2. Montevideo office market39
The supply of office space has expanded and is able to satisfy the requirements of domestic and
multinational firms. The office market in Montevideo began a renewal process in 2009, which
began with the start of the construction of World Trade Center III in 2007. At the end of the third
quarter 2009, two class A+ buildings were opened which added 48,175 m2 of office space to the
market, plus three class A buildings that provided 9,798 m2 of space. Eight construction projects
are expected to be completed in 2010 and six more
are expected for 2011. See Figure 11.
Following the international trend, developers are
beginning to show concern for the environmental
and renewable resources by seeking LEED standards
developed by the United States Green Building
Council for new buildings.
Figure 11. Change in inventory of class A+, A and B
offices in Montevideo, 2003-2014 (thousands of m2)40
Figure 12 shows forecasted changes in office space locations in Montevideo between 2009 and
2014. Existing buildings have a vacancy rate been zero and less than 5% in some cases.
Figure 12. Inventory of A+ and A offices in Montevideo in 2009 and estimated growth for 2009-
2014 (thousands of m2)41
40
Source: Colliers International, Q4 2009. Does not include officies in the Zonamerica free zone. Includes offices in the Aguada
Park and WTC free zones.
41
Source: Colliers International, Q4 2009.
24

25. Figure 13. Per category average rental prices for official buildings in Montevideo, 2009
(US$/m2)42
There is a wide range of prices in the market due to
30
4,3 various promotions developers have included in their
20 3,5 marketing mix. For example, for a class A building,
10 22 ,7 2,0
monthly rental prices vary from USD 14 m2 in areas
17,4
8,8 such as Tres Cruces to up to USD 26 in Ciudad Vieja.
0 See Figure 13.
A+ A B
Precios de alquiler mensual (US$/m2)
Figure 14 shows rental prices and monthly expenses
for some large buildings.
Gastos comunes mensuales (US$/m2)
Figure 14. Average office rental prices in Montevideo, 2009 (US$/m2)43
42
Source: Colliers International, Q4 2009.
43
Source: Colliers International, Q4 2009.
25

26. W orld T rade C enter 3.5
24.0
T orre Marigot 2.5
20.0
T orre J uncal 3.5
20.0
G as tos mens uales
P laza Mayor 1.4
18.0 de expens as
(US $/m2)
Aguada P ark 3.5 P recios de alquiler
18.0 mens ual (US $/m2)
T orre E l G aucho 2.2
9.0
T orre de los P rofes ionales 2.0
8.7
0 5 10 15 20 25 30
7. Human resource training
Uruguay offers a wide range of human resource training in tourism, especially in the mid-range.
The following are some examples:
7.1 ORT University. Tourism Management Technician degree (two years). Preparation to assume
supervisory responsibilities in medium and large tourism organizations or management of small
companies, including hotels, gastronomy services, travel agencies and transport services.
7.2. Montevideo Polytechnic Institute (ITHU). Two year courses: Expert in Gastronomy and Expert
in Hotel Management. One year courses: Expert in Tourism and Professional Organizer of
Congresses and Events.
7.3. Polytechnic University of Uruguay
(UTU). The following courses are offered:
Expert in Tourism (three years), Expert in
Performance and Recreation (one year),
Expert in Lodging Management (two
years), Expert in Tour Guide and Touristic
Circuit Design (two years). Travel Agency
Sales and Reservation Assistant (two
years), Tour Guide, Hotel Receptionist-
Concierge (two years).
8. Sector investment promotion and regulation
26

27. 8.1. Investment promotion
In Uruguay, several regulations offer benefits for investments in tourism. Some benefits are for all
industries, while others are specific to the tourism sector. The following are two recently
introduced incentives for investment promotion and a third existing system to provide income tax
exemptions for investments.
Recent investment promotion legislation
The Investment Promotion and Protection law of 1998 (no. 16,906) established the general
promotion framework while decree number 455/007 (26th of November 2007) is the current
applicable regulation. Decree number 175/003 (7th of May 2003) adapts said regulation specifically
to the tourism sector.
Applicants may select either system, or a combination of benefits from both in accordance with
the following.
A – General investment promotion system: chapter 3 of law 16,906 – Investment Promotion and
Protection Law and Regulatory Decree 455/007.
This system is applied to any type of company that is subject to the IRAE corporate income tax in
the agriculture-livestock, manufacturing, retail or service sector and that invests in:
moveable fixed assets directly linked to the company’s activity, including computer
hardware, utility vehicles.
fixed improvements (materials and services for civil projects), excluding those for
residences.
Investment projects must be declared as promoted by the Executive Branch. If a company belongs
to a promoted economic sector, it still must apply to the COMAP application commission (at the
UNASEP private sector support unit) to receive tax benefits.
Applications are submitted to COMAP44, which has set timeframes (30, 45 or 60 days according to
investment amount) to establish benefit amounts and promotion status with the Executive
Branch. If the timeframe is not met, it is understood that the project has been approved.
The IRAE corporate income tax exemption is the principal benefit and consists of deducting
investments made from taxes payable, in accordance with certain conditions regarding investment
amounts and fulfillment of certain objectives.
1) Investment amount
Seven investment sizes have been established so that the higher the invested amount, the higher
percentage of the investment that can be deducted from IRAE payable, and the longer the period
available for the deduction. See Table 4.
Table 4. Project sizes according to investment amount, percentage of IRAE income tax
deduction and timeframe45
44
COMAP and UNASEP offices are open to the public in the Uruguay Fomenta building located at Rincón 518, Montevideo.
27

28. maximum % of
Project Size in
Project Size in investment to be Maximum term
Indexed Units
US$ millions deducted from for deduction
(UI) millions
taxes
Small less than 3.5 less than 0.4 60% 5 years
Medium S1 3.5 to 14 0.4 to 1.4 70% 15 years
Medium S2 14 to 70 1.4 to 7.0 80% 20 years
Large S1 3.5 to 140 7 to 14 90% 25 years
Large S2 140 to 500 14 to 50 90% 25 years
Large S3 500 to 7,000 50 to 704 100% 25 years
Very large more than more than 704 100% 25 years
7,000
2) Fulfillment of certain objectives in line with economic policy
2.1. Percentage of investment to be deducted from taxes
Objectives include: employment creation; domestic added value creation; export growth;
decentralization or location outside Montevideo; clean technology use; increase in research,
development and innovation; impact of the project on the economy.
Each objective is assigned a score between 0 and 10. Each project size according to the
investment amount, weighs differently for each objective, and there is a maximum score for each
size.
2.2. Maximum timeframe for tax deduction
For the small size projects, the maximum terms are: three years (1 to 4 points), four years (5 to 7
points) and 5 years (8 to 10 points).
The maximum term for projects of very large economic significance is 25 years. For medium and
large projects, the maximum term is calculated by applying the ratio between the points obtained
and the maximum possible points (a higher score provides a longer term for deductions).
After the end of the term, non-deducted benefits are lost.
If the company does not initially have taxable income, the deduction remains on hold until taxable
income is obtained for a maximum of four years.
The term is in effect from the first year the company has taxable income, starting in the fiscal year
the project was presented.
A detailed explanation regarding score calculation and other requirements can be found at:
www.mef.gub.uy/comap_reg_actual.php and www.mef.gub.uy/comap_circulares.php.46
Other exemptions
45
Source: developed in house based on decree 455/007. To determine the dollars column, UIs were calculated at UYP 2.0916 and
the exchange rate at UYP 20.807 (31 August 2010), according to www.ine.gub.uy, price and wage indices. The maximum
investment amount for small projects is USD 351,800 using the indicated exchange rates.
46
Tax Bureau query no. 5172 of 23 December 2008 clarifies certain specific application aspects.
28

29. Exemption on IP capital tax on movable fixed assets during the productive life of these
assets. For civil works projects, the exemption period is up to eight years if located in
Montevideo and up to 10 years if located outside the capital.
Import duties and taxes on movable fixed assets are exempt when declared non
competitive with national industry by the National Industry Bureau at the Ministry of
Industry and Energy.
VAT on local purchases of materials and services for civil works projects may be returned
(similar to the export system).
B – Specific investment promotion system for the Tourism Sector: decree number 175/003.
Decree number 175/003 classifies tourism activities into two groups, with different incentives for
each:
a) Tourism projects: lodging, cultural, commercial, conventions, sport, recreational, leisure
or health activities that entail increasing tourism demand, approved in accordance with
law 16,906 and this decree.
b) Hotels, apartment hotels, inns, motels and tourism ranches already built or to be built.
Under this system, meeting the objectives of decree 455/007 is not required.
a) The following are exempted for Tourism Projects
for civil works, VAT on local purchases and VAT on imports for the project, IP capital tax for
11 years and 50% of import taxes on these goods. For IRAE corporate income tax, civil
works can be amortized over a 15-year period.
for equipment, VAT on local purchases and VAT on imports for the project, IP capital tax for
5 years and 50% of import taxes on these goods. For IRAE corporate income tax, civil works
can be amortized over a 5-year period.
b) The following is exempted for hotels, apartment hotels, inns, motels and tourism ranches
already built or to be built:
for equipment, VAT on local purchases and VAT on imports for the project, IP capital tax for
5 years and 50% of import taxes on these goods.
C – Alternative application of the general investment promotion system and specific system for
the Tourism Sector.
Exemptions from both systems can be combined (decrees 175/003 and 455/007), which are
presented for comparison purposes in Table A6 in the Appendix.
29

30. Investment exemption system (IRAE corporate income tax)
A long-standing system exists in Uruguay known as the Investment Exemption system that is
found in income tax regulations (IRAE corporate income tax that taxes income at 25%).47 This
system provides an exemption on IRAE up to 40% for income invested in the acquisition of fixed
assets (machinery, equipment, utility vehicles, computer equipment, etc.) and up to 20% of
income invested in construction or building expansions.48
The tourism sector is especially considered since the law states that assets for the furnishing and
refurnishing of hotels, motels, rest stops, and the acquisition of televisions and buses for hotels
are included. In building construction and expansion, hotels, motels and rest stops are specifically
mentioned.
Exemptions are presented along with tax returns.
8.2. Sector regulations
Hotels, apartment hotels, inns and motels
These four categories for tourist establishments are principally regulated by decrees 384/997 (15 th
of October 1997) and 210/001 (6th of June 2001).
The latter requires hotels, apartment hotels, inns and motels to be registered and authorized prior
to operations by the Ministry of Tourism and Sport (MINTUR). Requirements include valid
municipal authorization for the type of establishment (valid for five years) or municipal
authorization in process (in this case, the registry is provisory for an 18 month period).
Decree 384/997 establishes the one to five star system for each of the four tourist establishments
(except for motels, which have just three levels).
Ratings are performed in accordance with parameters established in the decree.49 Services
rendered by the establishments must be in accordance with the minimum required for the rating.
A Rating Commission, which operates under the Tourism Ministry, ratifies or rectifies the rating of
the establishment and is able to revise it during the period of validity.
The classification and rating (stars) must be indicated on all publicity, correspondence, bills and
other documentation and must be displayed on a distinctive sign at the main entrance and at the
reception area of the establishment. Establishments may not use any denomination or indication
different from what corresponds to its class and rating.
47
Amended text 1996, chapter 4, IRAE corporate income tax, valid in accordance with law 18,083 dated 27 December 2006 and
IRAE regulatory decree 150/007 dated 26 April 2007.
48
In both cases, exempted income may not exceed 40% of net income in the period. If the exemptible amount of the investment
exceeds this percentage, it may be deducted over the following two periods.
49
Items from the tourist establishment classification table, decree 384/997 dated 15 October 1997: 1) construction aspects of
rooms, 2) construction aspects of common areas, 3) room furnishings, 4) general furnishings, 5) personal services (i) 6) personal
services (ii), 7) languages and 8) general services. For details:
http://www.mintur.gub.uy/images/stories/pdf/hoteles/matriz_hotel.xls.
30

31. See the Tourism Ministry’s website on regulations and decrees for details on the following tourism
operators: travel agencies, organized campsites, hostels, real estate agencies, adventure tourism,
rural tourism services and auto rental companies.
The Tourism Operators page on the same site offers registry instructions and forms (the same
from the preceding paragraph, plus Tour Guides and Convention Halls).
31

32. APPENDIX
Table A1 – Uruguay: visitors according to lodging Table A2 – Visitors to Uruguay per country of
and length of stay in days, 200950 residence, 2009 (in thousands)51
Arg entina 1,530 72.9%
Thous ands Averag e G reater B uenos Aires 1,120 53.4%
L odg ing type
of vis itors s tay C entral and littoral 231 11.0%
Hotel 821 5.5 O ther Argentina 179 8.5%
O wn hous e 193 11.9 B raz il 250 11.9%
P orto Alegre 66 3.1%
R ented hous e 182 10.2
O ther s outhern B raz il 124 5.9%
Hous e of S ão P aulo 45 2.1%
family/friends 750 7.7 O ther B raz il 15 0.7%
C amps ite 42 9.9 P arag uay 47 2.2%
None 70 0.5 C hile 63 3.0%
Apartment hotel 20 6.5 North Americ a 81 3.9%
T ime s hare 3 5.4 R es t of Americ as 27 1.3%
O ther 18 5.5 E urope 95 4.5%
Total 2,099 7.2 O ther / no data 6 0.3%
T O T AL 2,099 100.0%
TableA3 – Reasons for visiting Uruguay, 2009 (in Table A4 – Nationality of cruise ship
thousands)52 visitors, 2009-1053
Vis it family and friends 469 22.3% T hous ands %
R ecreation and touring 1291 61.5% B razil 154 52.7%
B us ines s and profes s ional reas ons 154 7.3% Argentina 68 23.3%
S port 14 0.7% North America 36 12.3%
C ongres s , s eminar, s tudy 20 1.0% E urope 16 5.5%
Health 11 0.5% O ther Americas 13 4.5%
T rans it 89 4.2% O ther / no data 5 1.7%
R eligious 5 0.2% T otal 292 100.0%
O ther / no data 46 2.2%
T O T AL 2099 100.0%
50
Source: www.mintur.gub.uy, statistics
51
Source: www.mintur.gub.uy, statistics
52
Source: www.mintur.gub.uy, statistics
53
Source: www.mintur.gub.uy, statistics
32

33. Table A5 - 5 star hotels in Uruguay, 201054
Montevideo Punta del Este
Radisson Montevideo Victoria Plaza Downtown Conrad Punta del Este Resort Punta del Este
& Casino
Sheraton Montevideo Punta Carretas Solanas Forest Resort Portezuelo
Hotel Belmont Carrasco Mantra Resort-Spa & Casino La Barra
Las Cumbres (inn) Portezuelo
Villa Roma inn Parque Golf
Estancia Vik José Ignacio
Fasano Hotel La Barra
Department of Colonia Department of Salto
Sheraton Colonia Golf & Spa Resort Colonia del Arapey Thermal Resort & Arapey hot
Sacramento Spa springs
Hotel Four Seasons Carmelo Carmelo Horacio Quiroga Thermal Spa Salto
Radisson Colonia Hotel & Casino Colonia del
Sacramento
Table A6 – Comparison of general (decree 455/007) and tourism sector (decree 175/003)
investment promotion systems
VAT LOCAL PURCHASES VAT ON IMPORTS IP capital tax
Civil works Equipment Civil works Equipment Civil works Equipment
Decree VAT credit for VAT credit for VAT exemptions VAT exemption IP tax exemption IP tax exemption
175/003, local purchases local purchases on imports of in import of for civil works for equipment
section a - of goods for civil of goods for goods for civil goods for for 11 years for 5 years
Tourism works equipment works equipment
Projects
Decree Not applicable VAT credit for Not applicable VAT exemption Not applicable IP tax exemption
175/003, local purchases in import of for equipment
section b - of goods for goods for for 5 years
Hotels, etc. equipment equipment
Decree VAT credit for Not applicable 100% exemption 100% exemption Exemption from Exemption on IP
455/007 local purchases of fees and taxes of fees and taxes IP capital tax for capital tax on
(regulations of goods for civil (including VAT) (including VAT) civil works movable fixed
of law works on imports of on imports of projects for 8 assets for entire
16,906 goods for civil movable fixed years in useful life.
article 3) works projects assets declared Montevideo and
declared as not as not 10 years outside
competitive to competitive to the capital
domestic domestic
industry industry
54
Source: consultations with various specialists. Some hotels are in the process of being rated 5 stars by the Tourism Ministry and
for this reason, this table may differ from Table 2.
33

34. Table A6 (continued) – Comparison of general (decree 455/007) and tourism sector (decree
175/003) investment promotion systems 55
IRAE corporate income tax IMPORT TAXES
Civil works Equipment Civil works Equipment
Decree 175/003, Civil works can be Equipment can be 50% exemption on all 50% exemption on all taxes
section a – amortized over 15 amortized over 5 years taxes on imports of goods on imports of goods for
Tourism Projects years for civil works equipment
Decree 175/003, Not applicable Not applicable Not applicable 50% exemption on all taxes
section b – on imports of goods for
Hotels, etc. equipment
Decree 455/007 Exemption of a maximum amount and term of 100% exemption of fees 100% exemption of fees and
(regulations of 100% of the amount invested and for 25 years, in and taxes on imports of taxes on imports of movable
law 16.906 accordance with applicable objectives and goods for civil works fixed assets declared as not
article 3) indicators and project size projects declared as not competitive to domestic
competitive to domestic industry
industry
State institutions supporting the tourism sector
Ministry of Tourism and Sport, Minister: Dr. Héctor Lescano.
Rambla 25 de Agosto de 1825 esq. Yacaré S/N, Tel. 1885 100, www.mintur.gub.uy.
Municipal governments also have tourism areas or departments.
Business institutions related to tourism and real estate
Association of Hotels and Restaurants of Uruguay (AHRU): www.ahru.com.uy
Association of Private Construction Promoters of Uruguay (APPCU): www.appcu.org
Chamber of Hotel and Tourism Industry of Uruguay (CHITU): www.camtur.com.uy
Construction Chamber of Uruguay: www.ccu.com.uy
Construction League of Uruguay: www.ligaconstruccion.org
Real Estate Chamber of Uruguay: www.ciu.org.uy
Rural Tourism Society of Uruguay (SUTUR): www.turismoruraluy.com
Uruguayan Association of Congress Organizers (AUDOCA): www.audoca.com
Destination Punta del Este: www.destino-puntadeleste.com.uy
Punta del Este Tourism Cluster: www.pacpymes.gub.uy/web/turismo
Business Chamber of Maldonado: www.camaramaldonado.com
Rocha Tourism Conglomerate: www.rochaenelmundo.org.uy
Colonia Tourism Conglomerate. Martín Cuadrado: mcuadrado@coloniaturismo.com
Departmental Tourism Association of Colonia: www.coloniatotal.com.uy
Montevideo Tourism Conglomerate. Oscar Iroldi: turmvd@gmail.com<0
Web Portal of the Americas: www.portaldeamerica.com
55
Source: developed in house based on UNASEP data.
34

35. Uruguay at a glance56
Official name República Oriental del Uruguay (Oriental Republic of Uruguay)
Location South America, bordering Argentina and Brazil
Capital Montevideo
2
176,215 km . 95% of the territory has soil suitable for agriculture and
Surface area
livestock activities
Population 3.4 million
Population growth 0.3% (annual)
Per capita GDP US$ 9,458
Per capita GDP (PPP) US$ 13,019
Currency Uruguayan peso ($)
Literacy 98%
Life expectancy at birth 76 years
Form of government Democratic republic with presidential system
Political divisions 19 departments
Time zone GMT - 03:00
Official language Spanish
Main economic indicators
2005 2006 2007 2008 2009
Annual GDP growth rate 7.5% 4.3% 7.5% 8.5% 2.9%
GDP (PPP) US$ millions 32,048 34,602 38,235 42,543 43,551
GDP, US$ millions (current) 17,367 20,035 24,262 32,207 31,606
57
Exports (US$ millions), goods and services 5,085 5,787 6,936 9,291 8,551
Imports (US$ millions), goods and services 4,693 5,877 6,775 10,217 7,775
Trade surplus / deficit (US$ millions) 393 -90 166 -926 796
Trade surplus / deficit (% of GDP) 2.3% -0.5% 0.7% -2.8% 2.5%
Current account surplus / deficit (US$ millions) 42 -392 -212 -1.502 258
Current account surplus / deficit (% of GDP) 0.2% -2.0% -0.9% -4.7% -0.8%
Overall fiscal balance (% of GDP) -0.4% -0.5% 0.0% -1.4% -2.2%
Gross capital formation (% of GDP at current prices) 16.5% 18.6% 18.6% 20.2% 19.1%
Gross national savings (% of GDP) 17.6% 16.9% 19.0% 17.9% 17.1%
Foreign direct investment (US$ millions) 847 1,493 1,329 1,840 1,139
Foreign direct investment (% of GDP) 4.8% 7.5% 5.4% 5.7% 3.6%
Exchange rate peso / US$ 24.5 24.1 23.5 20.9 22.5
Reserve assets (US$ millions) 3,071 3,097 4,121 6,329 8,373
Unemployment rate (% of EAP) 12.2% 11.4% 9.7% 7.9% 7.7%
Annual inflation rate 4.9% 6.4% 8.5% 9.2% 7.5%
Net foreign debt (US$ millions) 8,938 9,157 9,662 8,254 11,123
56
GDP data was taken from the IMF; data on foreign trade, FDI, exchange rate, international reserves and foreign debt was
provided by the Central Bank of Uruguay (BCU); population growth, literacy, unemployment and inflation data comes from the
National Statistics Institute (INE).
57
2008 and 2009 data includes a partial estimate of production activity in Free Zones and the information regarding the survey
coordinated with CUTI for software related activities.
35

36. Investor Services
About Us
Uruguay XXI is the country’s investment and export promotion agency. Among other functions, Uruguay
XXI provides no cost support to foreign investors, both those who are evaluating where to make
investments as well as those currently operating in Uruguay.
Otoño
08
Our Investor Services
Uruguay XXI is the first point of contact for foreign investors. Services we provide include:
Macroeconomic and industry information. Uruguay XXI regularly prepares reports on
Uruguay and the various sectors of the economy.
Tailored information. We prepare customized information to answer specific questions,
such as macroeconomic data, labor market information, tax and legal aspects, incentive
programs for investments, location and costs.
Contact with key players. We provide contacts with government agencies, industry players,
financial institutions, R&D centers and potential partners, among others.
Promotion. We promote investment opportunities at strategic events, business missions
and round tables.
Facilitation of foreign investor visits, including meeting organization with public officials,
suppliers, potential partners and business chambers.
Publication of investment opportunities. On our website, we periodically publish
information on investment projects by public entities and private companies.
www.uruguayxxi.gub.uy
inversiones@uruguayxxi.gub.uy
36